AR HB1186

Adds aircraft insurance as a specific category within the definition of "casualty insurance" under Arkansas insurance law, defined as insurance against loss, damage, expense, or liability arising from ownership, maintenance, or use of an aircraft.

Prohibits aircraft insurance policies from excluding or denying coverage solely because the aircraft is operated in violation of state, federal, or local laws, except for specific exclusions related to FAA certification, pilot experience requirements, and aircraft use limitations.

Requires that an insured's actions or failures to act cannot be used to deny insurance claims unless there is a direct causal connection between the insured's conduct and the loss claimed, and defines denial as refusal to pay due to retroactive policy termination.

Prohibits liability coverage exclusions for passenger or nonpassenger injuries or deaths on aircraft with passenger seating, except for aircraft used exclusively in commercial operations.

Specifies that aircraft insurance shall not include other coverage types that may be issued for commercial aircraft operations.